Objectives: Introduction Over View of System Analysis and Design



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1.8.2.1 Decision Support Systems (DSS)

One reason cited in the literature of management’s frustration with MIS is the limited support it provides top management for decision making. DSS advances the capabilities of MIS. It assists management in making decisions. It is actually a continually evolving model that relies heavily on operations research.
Gorry and Morton Coined the term decision support system (DSS). The origin of the term is simple Decision – emphasizes decision making in problem situations, not information processing, retrieval, or reporting. Support – requires computer-aided decision situations with enough structure to permit computer support.


System – accentuates the integrated nature of problem solving, suggesting a combined man, machine, and decision environment. Beginning with management decision systems in the early s the concept of interactive computer – based systems supporting unstructured decision making has been expanded to include everything but transaction processing systems. Atypical early definition required an interactive computer – based system to help users use data and models to solve unstructured problems. There are authors today who view DSS as an extension of MIS, DSS as independent of MIS, or MIS as a subset of DSS. The commonly accepted view in the literature views DSS as a second – generation MIS. MIS is generated when we add predefined managerial reports that are spun out of the transaction processing, report generation and online inquiry capabilities – all integrated with a given functional area such as production MIS or personnel MIS. DSS result from adding external data sources, accounting and statistical models and interactive query capabilities. The outcome is a system designed to serve all levels of management and top management in particular, in dealing with what if unstructured problem situations. It is a system with the intrinsic capability to support ad hoc data analysis as well as decision – modeling activities. The intelligence phase of decision making involves the awareness of a problem at asymptomatic level it requires a closer look at the problem and a through evaluation of the variables and their relationships. The more intelligence management has about the cause of a problem, the better is the likelihood of designing a good decision. A DSS can provide intelligence through information retrieval and statistical packages. The design phase of decision making focuses on the evaluation of decision alternatives. During this phase, computer – based deterministic or stochastic models maybe used for decision design. DSS plays a major role indecision design under uncertainty. The output of the models) is the basis of the choice phase of decision-making.

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